Will Smaller Companies Buckle Under the SEC’s New Requirements?

July 12, 2024 at 10:13AM

The SEC’s new incident reporting requirements are raising concerns among security professionals and government bodies. Arguments include duplication of existing legislation, challenges in early disclosure of breach information, and the burden on smaller companies. Small organizations can mitigate the impact by familiarizing themselves with major security frameworks and building a robust security program.

Key Takeaways from the Meeting Notes:

1. The SEC’s new incident reporting requirements have raised concerns and questions among security professionals and government bodies. Some argue that these requirements may duplicate existing laws and put pressure on resource-constrained cybersecurity teams.

2. Challenges include the difficulty of distinguishing victims from perpetrators, determining material information for investors, and the need for improved communication with business-level executives and the board.

3. Smaller reporting companies will be subject to the same requirements as larger organizations from June 15, which could potentially burden them with penalties and hinder their growth.

4. Steps for small organizations to mitigate the impact include becoming familiar with major security frameworks such as NIS2, NIST CSF, NIST Risk Management Framework, ISO/IEC 27000, and CIS Critical Security Controls. Additionally, building a strong security team and implementing security best practices, automation, and open-source tools are recommended.

Overall, the meeting notes emphasize the need for small organizations to prepare for the SEC’s incident reporting requirements through education, strategic planning, and the establishment of comprehensive security measures.

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